Wine 2.0 – An Irreverent Review

Wine 2.0, a massive San Francisco event at CrushPad on the eve of April 2, left me a bit confused. Overall I’m not convinced that social media is really conducive to a social event. There were heavy overtones of a serious wine event, fraught with New World technologies (social media) and Old World wine snobbery. For that essential wine event light touch… well, a little levity was hard to find. One fun gem, tucked away in a corner, was a little orange book in a jam jar: the JarGon. Billed as “the ultimate conversation piece” and produced by very clever folks at The Imagineering Company LLC, it is a small small book covering a big big subject: the buzzwords of wine. My personal favorite? “Reserve: A term with no real legal meaning in the U.S. It implies that the wine is from the better part of the production; but it’s not.”

Seriously, folks, the event was spectacularly well organized, with huge screens RSS-feeding both real-time Tweets and comments on other social media sites. You-tube videos and more serious wine TV episodes were being recorded every way you turned. Wineries poured from approachable high round cocktail tables instead of the usual stand-behind-the-barricades-and-fend-off-the-ruffians trade show tables. The place was packed.

And there were some serious wines and some fun-loving winemakers. As always telling a good story, Jeff Stai, “El Jefe” at Twisted Oak Winery (Murphys, CA) reached behind the bottles of Spaniard and did some barrel samples of 2007 Torcido (a Grenache) and 2007 River of Skulls (a Mourvèdre). Among my favorites of their products is the rubber chicken-original recipe, which notes that debauchery is sold separately. Jeez, I thought it was all just part of the wine tasting scene.

Tearing myself away from the prospect of body-damaging fun was difficult, but there were lots of diversions. On the more serious side was the chat with Nick Buttitta, of Rosa d’Oro (Kelseyville/Lake County, CA). Rosa D’Oro specializes in Italian varietal wines, and their Primitivo was as complex and spicy as an Italian Zinfandel should be. Hard at work pouring, Nick’s son Pietro Buttitta exemplifies all that’s good about family owned wineries: intensity, passion, belief.

I could go on and on. But it’s late (the event was supposed to end at 10 p.m., but there was no rush for the door then) and … I have some reTweets to do.

Why is California Neglected by Wines of South Africa?

It's a long story, but it has to do with spending several weeks in and around Stellenbosch, talking to food scientists and others involved in the wine industry at Stellenbosch Universitat, going to tasting rooms in and around Stellenbosch, Paarl, Hermanus ... and finally ending in an office at WOSA (Wines of South Africa) to chat about promoting these wonderful wines in the USA.

It's been over a year of frustration now, scouring the racks at Jug Shop, BevMo, Wine Merchant, K&L, Safeway,SaveMart, Whole Foods, World Market etc etc and wondering... where the heck are they? Why is it that we have such anemic selections of South African wines here in California?

I even went so far as to organize a tasting of South African wines at a garden party on Russian Hill in South Africa.... just to see what 80 neighbors could find. The results were pretty darn sad.

Now, if you are any kind of well-rounded wine drinker, you know that these "new world wines made in an old world way" are superb. It might take a while to develop a palate for "Steen" (their word for Chenin Blanc), but there are some darn good Steens available in South Africa.

So how about it? How about putting some promotional oomph into the West Coast? Maybe the recent initiatives by the newly-formed group USAPA will finally get the fires lit here. In a way, it's sad that a second group is emerging to do the job in marketing ZA wines more aggressively to the USA, but, well, finally.... ! !

Avoiding the “Little Shop of Insurance Horrors”: Flashing Yellow Light for Winery/Vineyard Owners!

Risk management should not be in the hands of the “Little Shop of Insurance Horrors” around the corner from your winery. Yet this is exactly what has happened in parts of the USA where wineries have popped up in remote areas in states such as Iowa, Illinois, Minnesota, and Wisconsin. The result is an incredible “coverage gap” that puts winery and vineyard owners at great financial risk.

The winery business is unique. Insuring a winery against loss requires a thorough knowledge of the nature of this business. Most often, however, new winery owners often call upon their corner insurance office to bind a commercial policy for them. Since there is not a winery in every community or county, these well-meaning agencies were left to scramble to put something in place, even though these policies were not intended specifically for wineries and vineyards. That’s presented a big problem.

It’s not easy to make sure that winery operators understand the difference between “what they have” and “what they need”. By working with state winery associations, however, there is a chance to educate both operating wineries and those planning to open, about the need to understand all the aspects of their operations where risk enters the picture.

Every year I do an annual tour of state winery association conferences in the Midwest. This year, there has been one remarkable discovery: over 70% of the wineries in operation do not have a proper commercial policy in place for their winery business! And with a very substantial growth predicted over the next 3-5 years, winery operators need to be educated as soon as possible.

How can we fix the coverage gap? This is an important question, because just one weather-caused failure that takes a winery out of business will cause anxiety with existing winery owners and dissuade newcomers from entering what can be a thriving, exuberant, profitable business.

Convincing underwriters to provide coverage for such winery risks is a lot of work. It means that an agency has to hand-hold risk control professionals and take them to wineries so that they can see firsthand what this growing Midwest winery industry is all about; wine production, vineyards, receptions, gift shops, grape stomps, volunteer grape picking, music among the vines, etc.

For the past few years, our group at Tricor did just that, and now we work on behalf of our Midwestern wineries with four regional carriers with comprehensive winery programs and one national carrier with specific winery/vineyard coverage. Working with dedicated professionals who understand the winery business is a winery owner’s best bet for managing risk.


Guest blogger Chuck Andracchio manages the Hospitality Insurance Program for TRICOR Insurance from his office in Dubuque, Iowa. He counts over 30 wineries in Iowa, Illinois, Minnesota and Wisconsin among his clients. Not satisfied with insurance programs offered to wineries of the Midwest, Chuck motivated regional carriers to enter the unique industry of winery insurance. You can reach him at 1 800 556 5441, ext 1444, or by email to candracchio (at) tricorinsurance.com

Story Indiana, Story Indiana, Story Indiana, Wine’s Home Sweet Home*

What do the largest county fair in the USA, Rock star John Mellencamp, and the newest Miss America have in common? It’s Jackson County, Indiana. Seymour is the largest city in that lucky county. And the largest wine and spirits store in Seymour reports that wine sales are surpassing beer sales. Well, well, well. The Hoosier State rides again!

Now this factoid should alert you to an important fact: wine is alive and well in rural communities in Mid-America. This is probably not something that is tracked assiduously by Nielsen or IRI, but it is one of the facts that are fueling the growth of the wine industry in the Midwest.

Want to see for yourself? Then your closest-in-time opportunity is the Indiana Wine Fair, held April 25, 2009. You can spend a leisurely Saturday afternoon sampling Indiana wines in the historical and bucolic setting of Story, Indiana. Story is a 19th Century village founded in 1851 that now includes Indiana’s oldest country Inn, charming cottages, and a world-class restaurant.


Proprietor of the Story Inn (and in fact, the owner of the entire village) is Rick Hofstetter, a retired-from-the-ratrace lawyer. He and Allen (Ole) Olson, faithful writer of the Blog Hoosier Wine Cellar, have been working their butts off to pull this festival together and it is now in its seventh year. It’s a labor of love.

Virtually every Indiana winery participates in this event, with tastings taking place rain-or-shine under a huge white tent, and a bevy of independent tasters get hard at work judging wine.

“Our judges are all wine consumers, as opposed to wine professionals. These are people who use wine, know a lot about it, but are not in the trade,” explained Ole. “We’ve done this on purpose, because we want our Indiana wineries to know what consumers think about their wines. After all, consumers are the ones who do the buying.” Wines are judged in seven categories: dry white, sweet white, dry red, sweet red, dessert wine, non-grape wine, and Best of Show.

The day before, on Friday, April 24, Story Inn hosts Wine and all that Jazz, a musical gala that features awards to the wineries, tasting of Indiana's finest wines in each category, and a full buffet dinner. Quite a value at $50, and proceeds go to benefit Brown County Citizens Scholarships. The day after, Sunday, April 26, you’ll want to stick around for this: Hoosier Cuisine Gone Wild! This Black-tie-optional-dinner features the Gold Medalists in each wine-judged category, with food pairs matched to authentically Hoosier cuisine. $100 per plate, and again, proceeds to benefit Brown County Citizens Scholarships.

Indiana wineries need to tip a hat to Rick and Ole. They are working hard to promote the industry and it is strictly an eelymosynary effort. But did I mention that the Story Inn has the finest wine cellar in Southern Indiana? And that Ole is spearheading Vinsense, a recently-formed wine advocacy group fighting an uphill battle to convince the Indiana Legislature to change the law regarding direct shipping from producer to consumer.


As for the newest Miss America, it’s 22-year old Katie Stam, who lives not far from Story, IN. She is also Indiana’s first Miss America, and to hear Ole talk, the folks aroundabout are almost as proud of that as they are the great wines Indiana is now producing.


Photo credit Miss America to LugaLuda Blogs





*(apologies to Music Man)

Marketing, and Leading, Through the Fear Cycle

"How Frank or Deceptive Should Leaders Be?"

What a great come-on! Who wouldn't read an article with a title like that? Particularly when it comes from that font of managerial wisdom, the Harvard Business School "Working Knowledge" newsletters that are designed to keep the grey cells moving. In addition to transparency, the need for high ethics, and the importance of smiling through the Fear Cycle, B-school experts continue to beat the drum of marketing experience and have this to say about Leading in a Crisis: Be aggressive in the marketplace!

Jim Heskett, Baker Foundation Professor emeritus at HBS, set this up as a discussion forum. You'll want to see the whole string -- with remarks from Directors and department heads of major companies like Saint-Gobain Weber and Intuit and Motorola, to officers in the Ministry of Commerce in Pakistan, to the all-important "anonymous" responders. Click here to read it all

The comment No. 4 by Ryan Schon caught my eye. He wrote, in part, "I don't think there's anything wrong with leaders acknowledging that we are in a fear cycle right now but that capitalism and entrepreneurship will prevail."

Yes, we are in a fear cycle. As of March 3, 2009, consumer confidence and business sentiment are at historic lows, according to a chart developed by UBS based on data from FactSet.

But here is the what you should really pay attention to, and it is lucky number point 7 in the article authored by Bill George in the online Wall Street Journal on March 5, titled "Seven Lessons for Leading in Crisis".

"Be aggressive in the marketplace."

Just how do you do this? Actually, I am not going to tell you anything you don't already know.

First, DO NOT CUT your marketing budget. However, you might want to bring it closer into line with the consumer groups who are still spending (read: Millennials). And there are cost-effective distribution strategies you can pump up right now, such as doing ride-alongs with your distributors and meeting those wine selling foot-solders known as store and restaurant owners. A little creativity goes a long way in advertising and PR (um, how long since you've tuned up your graphics and messages?). Coordinate the elements of your program closely; it's no time to waste your dollars by letting your attention slip.

And, smile. Smile a lot. If the stress has been great, practice smiling in the bathroom mirror until the face muscles go there automatically and the laugh lines reappear.

Just one last thought on transparency by management -- whether you are a winery owner or marketing manager, or a CEO or sales director for a supplier company -- pay attention! Because down there at No. 32 on the discussion is my favorite, from Scott W. Ventrella, Managing Director of the Center for Corporate Ethics. "Under no circumstances should a leader attempt to deceive or mislead members of their organization. That said, it is incumbent upon leadership to present the facts but not dwell on the negative (or draw premature conclusions no matter how dire the situation). Fueled by vision, hope and optimism, great leaders over time have energized and inspired people to see beyond "hopeless" situations -- without compromising their own
integrity.”

Barrel Tasting Tidbits

Is this Disneyland, or what? Stretch limos in black or white (take your pick, and then choose the 15, 20, or 25 foot versions), tour busses big and small, Maseratis with tops down, sedans with their hubcaps shined, and diamonds leathers tightjeans WOW. This was my first Sonoma barrel tasting.

Luckily, with the Back Lane Wineries of Sonoma guidebook in hand, I was able to avoid the wineries that seemed to be high on the tour-for-pay routes. I'd been told that "passionate amateurs are very welcome" in the smaller wineries, and this certainly proved to be the case.

The most welcoming was Hawley Winery, at 6387 West Dry Creek Road, Healdsburg. Youngest of the clan, Austin, obligingly put his scrambled eggs on bread and got in the pickup and drove down the hill from the family's nearby house. The experience was delightful! My guest, 22-year old niece Margaret and my authentic millennial and thus social media consultant, is packing a bottle of their 2006 Zinfandel, Ponzo Vineyard ($26) back home to Indiana.

Austin let us taste from a number of barrels, and the 2008 Cabernet is going to be SPECTACULAR. Too bad they don't do futures! They'd just bottled their 2007, but it wasn't yet labeled or for sale. I consoled myself with a bottle from one of the 400 cases they'd produced of the 2006 Cabernet Sauvignon from the Saggio Hills Vineyard, Alexander Valley ($32.00). The back label says it all: "This wine is exactly what little cabernets dream of becoming when they grow up".

John Hawley and sons Paul and Austin have a wonderful back-lane enterprise producing wines that are top-shelf worthy. Go see them for yourselves.

Herb Gold Reminisces: Wine in the Park in Cleveland

Author Herbert Gold is a well-known fixture in San Francisco life and has been for years. He's been known to lift a glass of wine or two and actually, despite his sardonic interview below, he loves wine and loves parties. The summer 2008 author event at City Lights Bookstore for his most recent book, "Still Alive - A Temporary Condition", packed the house and was well reviewed. Fans sat tripled up on the stairs to the discussion room, listening to his tales of the beat generation, on-the-road style. His biography includes a list of books and articles so long that we can't put it here, but click here to read about one of our California writer icons!

Herbert Gold, cornered at a garden party on Russian Hill in San Francisco on the Ides of March, was asked to talk about wine. He said: "I love when people start talking about wine. I often then quote a writer who said, "big people talk about ideas, medium people talk about food, very tiny people talk about wine." Diogenes, I think, was asked what his favorite wine was, and he said, "Other people's". This is the way I avoid getting invited out very often. If people start talking about wine and you indicate you're bored... you are not invited again.

My best wine-associated memory? It is the day I got married to Melissa, my second wife and mother of my three youngest children. The wine drinking happened in Big Sur. We stopped on our way there, in Pacific Grove, and got married. What wine was I drinking? I don't remember, it was a long time ago.

My wine-associated memory that I sometimes wish hadn't happened? Well, this occurred in a park in Cleveland. I was in high school. My friend and I stole wine from our parent's liquor cabinets. We took some other kinds of alcohol too. We went to the park, it got dark and we got drunk. He picked up a knife and started chasing me and accused me of stealing his girlfriend. Turned out later that my friend was quite a talented writer. He published one great book, and several others not so great. But his life was compromised by alcoholism.

If he reads blogs in heaven, I want him to know: I did not steal Lucille from him!"